Laziness and loyalty: new survey exposes the key factors slugging Aussies with the lowest savings rates

14 small white piggy banks placed randomly on a green surface.

1 in 6 Aussies say they’ve never changed savings accounts “because it’s too much effort”, but a new report from Mozo has found that those of us who haven’t bothered switching are lagging behind with the lowest interest rates.

According to Mozo’s ‘SOS’ Savings Report for 2024, Aussie’s who said it’s too much effort to compare and switch have a savings interest rate of 3.12% p.a. on average – the lowest of all those surveyed. That’s two percentage points below the best rate in our database of 5.55% p.a. at the time of writing.

But it’s not just laziness that leads to the lowest savings rates – loyalty plays a part too.

No reward for loyalty

Aussies who switched savings accounts “for more convenience / to have all my accounts in one place” were surprisingly found to have the second-lowest savings rate of those surveyed, coming in at 3.46% p.a. on average.

Mozo’s personal finance expert, Rachel Wastell, says there’s no reward for loyalty when it comes to savings accounts. “Switching for convenience is not likely to get you the best return, as full-service banks often have lower rates than specialist providers,” she said. 

The survey also revealed that those who hadn’t switched savings accounts because “I'm happy with my current savings provider” had the third-lowest interest-earning rate of 3.70% p.a., further suggesting loyalty is holding Aussies back from getting good savings returns.

“Savers should look for a high rate first and foremost if they want to make their money count for more,” said Wastell.

Why you should switch savings accounts

If you’re keen to get a better savings interest rate, you can start by comparing high interest savings accounts. Or, you can head straight to the Mozo Experts Choice Awards for Savings Accounts and take a look at this year’s winners list to start your comparisons.

It’s worth noting that many providers on the winner’s list only offer the highest interest returns when you meet a set of bonus conditions, such as depositing a certain amount of money into your account each month, which means some work is required on your behalf.

But according to a report by the Australian Competition and Consumer Commission (ACCC), the vast majority of savers aren’t doing this, as 71% of bonus interest rate accounts didn’t meet the conditions to receive their bonus in the first half of 2023.

If you don’t want the caveat of meeting bonus rate conditions in order to earn a higher interest rate, you’re better off comparing savings accounts with a high standard (or base) rate – that way, you’ll get a return on your savings with little effort (see the winners of the No Strings savings category in our Mozo Experts Choice Awards).

If you can meet those bonus conditions, however, Mozo’s analysis shows your savings will be better off. With an average bonus interest rate of 4.51% p.a., you would receive an extra $422 in interest over 1 year (on a balance of $10k) by meeting the bonus conditions.

Ready to get a better savings interest rate? Start comparing below.

Compare savings accounts on Mozo - last updated 27 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Details
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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    Details
  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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